With house prices constantly on the rise, it’s getting tougher and tougher for people to break into the property market. To help with this, most states and territories across Australia have introduced a first home buyer incentive of some kind to help you get started.
First home buyer incentives can and do change depending on the state or territory you’re in and have different terms and conditions to qualify. So, let’s take a look at the current incentives for each state and territory so you can get a better idea of what you’re entitled to. Or, speak to one of our New Home Specialists to see how Darren Walters and the No1 Property Guide team can help you use a first home buyers grant to build your dream property.
New South Wales
In NSW there is a $10,000 First Home Owner Grant (FHOG) available for newly built homes valued under $750,000. Or purchases of new homes under $600,00 in value. First home buyers will also pay no stamp duty for homes valued under $650,000, or vacant land under $400,000.
Or a stamp duty reduction for homes valued up to $800,000, new homes up to $1,000,000 and vacant land up to $500,000. There’s even an added benefit of no insurance duty on lender’s mortgage insurance.
But to be eligible for the FHOG in NSW, you must live in the home for at least 6 months of the first year of ownership. Unless you work for the Australian Defence Force and aren’t able to due to deployment.
Currently, No1 Property Guide’s no or low deposit homes are available throughout NSW. Including throughout the Hunter Valley, Central Coast and the Newcastle areas.
First home buyers in Queensland have access to one of the best first home buyers incentives in the country. Currently, eligible first home buyers can access $15,000 to use either as a deposit or as a payment towards a new buy or build valued up to $750,000.
To be eligible for the FHOG you must move in within the first year of ownership and live in the property continuously for 6 months.
No1 Property Guide can help you take advantage of these grants to build your dream first home. We’re able to provide no or low deposit house and land packages anywhere there is land in QLD. Contact us for more details.
For those of you looking to buy or build Victoria, you may be eligible for the First Home Owners Grant up to $10,000.
The value of the new buy or build can’t be over $750,000 and it must be less than 5 years old.
Victorians also have access to other grants. Some of the additional current first home buyer incentives in Victoria include:
- First home buyer duty exemption for new builds or buys valued up to $600,000. Or a concession for a principal place of residence (PPR) with a dutiable value between $600,001 and $750,000
- A PPR concession for new and existing homes valued up to $550,000 if you intend to live there as your primary house
- Young farmers duty exemption for young farmers buying their first farmland property valued up to $750,000
Victoria is one of the most popular states for renters looking to enter the market and it can be hard to find land anywhere privately.
No1 Property Guide has access to registered land across Victoria. We’re able to provide no or low deposit house and land packages in areas where buying privately just isn’t possible.
Australian Capital Territory
Currently, the ACT does not offer any first home buyer incentives. However, first home buyers are entitled to a means-tested full stamp duty concession.
For you first home buyers in the Northern Territory, there is a $10,000 First Home Owner Grant for those buying or building their first home. You may also be eligible for the BuildBonus grant or Territory Home Owner Discount which can save you up to $18,601 off your stamp duty.
South Australians also have access to a first home buyers grant of $15,000. However, this is only available for new buys or builds of up to $575,000. If you’re looking at buying an off-the-plan apartment, you may be able to get a stamp duty concession up to $21,330 if you meet the eligibility criteria.
First home buyers in South Australia need to move into the property within the first year and live there for 6 months continuously to be eligible for a first home buyer incentive.
For those of you looking to build or buy down in Tassie, you may be eligible for the First Home Owner Grant of up to $20,000. This includes building ‘kit’ homes, off-the-plan homes and builder-owner homes. To be eligible you must live in the property as your main home for at least 6 months of the first year you own it.
You may also be eligible for a 50% stamp duty concession if the property you buy or build has a dutiable value under $400,000.
Finally, those of you looking to buy or build out west may be eligible for a $10,000 first home buyer incentive. New buys or builds south of the 26th parallel (Perth metro included) are eligible for up to $750,000. While those north of the line can go up to $1,000,000.
On either side of the line, a stamp duty exemption is available for first time home buyers when the property is under $430,000. If it’s above that but below $530,000 then you might be eligible for a concession instead.
There’s also an additional grant of $2,000 available for homes up to $400,000 to help cover the incidental costs of buying an established or partially built home through a real estate agent in WA.
First Home Loan Deposit Scheme
Another first home buyer incentive that’s open to first-time buyers across the country is the First Home Loan Deposit Scheme. This allows first home buyers to only have a 5% deposit as the government will guarantee the rest.
This doesn’t mean they will pay the other 15% though.
It simply means the bank or lender won’t charge you LMI and makes getting approved for a loan a little easier. However, this scheme only has 10,000 places each financial year. It has a few terms and conditions you’ll need to meet.
Contact our New Home Specialists to find out more about the First Home Loan Deposit Scheme.
How a First Home Buyer Incentive Can Help You Buy Your First Home
So, there you have it. Depending on where you live, you may be eligible for a grant to buy or build your first home. In a lot of cases, lenders or mortgage brokers will be able to use a first home buyer incentive as a deposit to help get the process started. In some states, you can even combine various grants or incentives if you’re building a new home!
Of course, there’s a lot more than simply having the grant available when you’re looking to buy or build a new home, and sometimes the FHOG isn’t enough. That’s why Darren Walters created No1 Property Guide and his unique no or low deposit home loan system. To help you stop renting and start living in your dream home sooner.
*First time home buyers incentives can and do change regularly. This information is accurate at the time of writing but is subject to change without notice. No1 Property Guide always recommends you seek professional financial advice and do thorough research before making any decision.